Osborne: Households will lose £4,300 a year in Brexit

A vote to leave the European Union would leave British families about £4,300 a year worse off as GDP in the wider economy is forecast to shrink 6% by 2030, the Treasury has claimed.

A 200-page report by the Treasury, published today, argues the economic case for Brits to vote to remain in the EU.

Reports suggest that the research will argue that lower exports and both domestic and international investment in the UK will hit the country’s growth prospects dramatically.

Writing in The Times this morning the Chancellor said: “Put simply‎: over many years, are you better off or worse off if we leave the EU?

“The answer is: Britain would be worse off, permanently so, and to the tune of £4,300 a year for every household.

“It is a well-established doctrine of economic thought that greater openness and interconnectedness boosts the productive potential of our economy.

“That’s because being an open economy increases competition between our companies, making them more efficient in the face of consumer choice, and creates incentives for business to innovate and to adopt new technologies.”

The report argues a Brexit would result in higher borrowing costs for the UK government and business, which could result in rising mortgage costs for borrowers.